Buying a home can be a daunting task. It is therefore advisable to buy new homes through residential mortgage broker. A residential mortgage broker will make it easier for you to buy your new home, by guiding you through various types of mortgages available in the market and identifying the deal most suited for you. Even you are a first-time buyer and new to the real estate industry, a residential mortgage broker will make the entire buying process a lot easier.
By virtue of their professional expertise, residential mortgage brokers have specialist knowledge of the lending market. They guide potential buyers, who need to find a mortgage to purchase a property, and educate them on the huge range of deals, interest rates and incentives available. The mortgage broker offers financial advice and recommends the most appropriate mortgage for the buyer. You would certainly feel more confident and at ease with a qualified residential mortgage by your side.
You need to know that there are three different kinds of mortgage brokers. Some mortgage brokers work in close association with specific lenders, which means they will only recommend these specific mortgages and will not give you a choice. This type of broker usually charges commission on the mortgage rather than an upfront fee. Other category brokers recommend mortgage lenders from a panel, which represents a limited section of the entire market. There are also independent brokers, who are not tied to any lenders. They recommend mortgage lenders from the whole of the market. This means they may be in a better position to offer genuinely impartial advice.
The obvious question is how do you find a mortgage broker? Ask your neighbors and the friends you know. If you think the property you are buying may be difficult to get a mortgage, ask the seller of the home if he or she can recommend a mortgage broker. If you are still having problems finding a broker, look into the ads in the press. Do not straightaway settle for the first broker you see. Fees vary, so phone a few to get the lowest price.
The next question is at what stage in buying your home you need to hire a residential mortgage broker? You have been house hunting, have spotted the perfect home and want to borrow enough money to finalize the deal. Alternatively, some buyers find it useful to have an initial consultation with a residential mortgage broker before finalizing the home so that they can have a rough idea of how much they will be able to borrow. What will happen at my first meeting with my mortgage broker?
A residential mortgage broker will assess your financial circumstances to determine how much money it is possible for you to borrow. The residential mortgage broker will ask for your credit history, income, outgoings, and seek a pile of documents to prove your affordability. Be prepared to dig out pay slips, bank statements, P60s, utility bills, passports and all other documents.
Using a residential mortgage broker can also save time and money because you will not have to run around to compare mortgage rates as the broker will do the work for you. Residential mortgage brokers are trained professionals who know which options can save you money over the life of your loan and remember that mortgage brokers work for you, so they have your best interest in mind. Mortgage brokers are also more likely to get a fast and positive result from a lender because they deal with them on a regular basis.